Tow Truck Insurance: How To Cut Costs With Risk Management

Tow Truck Insurance: How To Cut Costs With Risk Management
by Arthur Williamson

Although tow truck insurance rates average around $4,000 to $5,000, policy premiums can spike up to $15,000 per annum for high-risk truckers. Insurers generally charge at-risk clients more. As such, minimize your associated risk factors to improve your overall insurability as a trucking service provider.

Proper risk management plays a crucial role in keeping tow truck insurance costs down. Hire truckers with a good driving record, maintain your credit score, avoid getting into road accidents, and keep your tow trucks safe 24/7. Also, avoid hauling high-value cargo. Specializing in towing luxury vehicles drives up your tow truck and on-hook insurance premiums significantly.

Risk Management Tips to Minimize Tow Truck Insurance Costs

Bolster your risk management strategy with the following straightforward, actionable tips:

  • Opt to avoid towing high-value vehicles. Towing companies that haul luxury, high-value cars often end up paying several grand more for on-hook coverage.
  • Keep your tow trucks locked at all times. Invest in high-quality locks to prove to insurance providers that you take security seriously.
  • Hire competent truckers. Insurers will charge you more if your truckers have poor driving records and multiple traffic violations.
  • Maintain a solid financial standing. Keep all your financial records and maintain high credit scores to ensure that you have a stable, reputable company.
  • Get a front and dash camera. Have a camera recording your operations 24/7 to ensure that you have sufficient evidence if an accident occurs.

Avoid skimping on insurance. Keeping your premiums to a minimum reduces your monthly expenses, but operating underinsured compromises your long-term continuity plans.

Remember: road accidents cost far more than any insurance policy. In the worst case, property damage and bodily injuries could set your business back by over $150,000.

Are you stuck between the different insurers in your area? Assured Standard has you covered! Use our in-depth comparison review of the top five truck insurance companies as a starting point.

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Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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